A little advice please :)

YorkshireBoy

Slayerx wrote: »

Looking at my figure I can think I can get it paid off a little quicker [than 20 months].

Once I pay off the two cards with the lower balance, would if then make sense to try balance transfer at least some of the larger balance to reduce the amount of interest paid overall?

If you're not planning any more credit applications in the short term, what harm would a BT card application now do?...sounds like nothing to lose and everything to gain to me!

Slayerx

Say I do apply and I'm rejected how long does that effect my credit?

Also I've heard some lenders do soft searches ?

jamesd

No reason not to apply for either a BT or purchases card now. One application won't have a significant effect on most lenders (it can for M&S). Use something like the Noddle card suitability checker to see what your chances appear to be for cards you're considering. The effect of an application decreases rapidly for perhaps the first three months then more slowly until it vanishes from your report after a year.

It's also worth accepting an increase from Halifax to reduce the percentage of credit you have used. If you get a BT card without enough limit to clear all three cards, clear some off each to get each to about the same percentage of available credit used.

One thing to be aware of is existing customer balance transfer offers. Having a zero balance for six months or a year can trigger those. NatWest can do increasingly good offers until a year has passed without use. Sometimes also with use but no use is more reliable in my experience. For this reason it can be useful to have a NatWest (or perhaps RBS also) card with zero balance. If you happen to have one of those already it might be useful to fully clear that one.

MBNA tends to be good for getting highish limits. Barclaycard has a soft search that has them give you some idea of how they might view your application, something you can use after Noddle's, perhaps, if you like the look of one of the Barclaycard cards.

[Deleted User]

Before considering a BT, work out how much interest it would cost you, to clear whatever will be left, then compare that to what it will cost you in transfer fees and (if it isn't actually 0%) the interest on the new card.

YorkshireBoy

jamesd wrote: »

No reason not to apply for either a BT or purchases card now.

However, it would be better to wait until the loan is marked as settled with the CRAs in my opinion.

YorkshireBoy

Bedsit_Bob wrote: »

Before considering a BT, work out how much interest it would cost you, to clear whatever will be left, then compare that to what it will cost you in transfer fees and (if it isn't actually 0%) the interest on the new card.

OP initially said they'd need 20 months, but later said they could bring this down.


Whichever way you look at it, on standard rates of circa 18.9% APR a 3% BT fee would be recoverable after just 2 months. Even if the cards in question are sub-prime, or have sub-prime rates, the BT fee would be recoverable in 4 months.


With the timescale, original or re-forecasted, involved, it's an absolute no-brainer to (attempt to) BT the debt...isn't it?

Slayerx

Thanks for all the great advice.

I think I'll make my final loan payment, get my credit file updated and see about a BT now rather than later.

Ill make sure I call HSBC who I have my loan with once paid to ask they update my credit file asap.

jamesd

YorkshireBoy wrote: »

However, it would be better to wait until the loan is marked as settled with the CRAs in my opinion.

Perhaps, but the difference between one payment remaining and completely paid off is pretty small. If it was early settlement rather than normal end it'd make more difference and I'd agree.

gt94sss2

Slayerx wrote: »

Ill make sure I call HSBC who I have my loan with once paid to ask they update my credit file asap.

Worth noting that HSBC have a reasonable BT offer at the moment. I presume as you have a loan with them, you have a bank account as well and they can see how well you have managed your finances (+ they will know the loan has been paid off).

Once I pay off the two cards with the lower balance, would if then make sense to try balance transfer at least some of the larger balance to reduce the amount of interest paid overall?

You don't say what the APR of each card is but you would end up paying less interest if you direct your payments to the card with the highest APR rather than the ones with the lower balances (of course they could be the same!)..

Regards
Sunil